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Towards sustainable financing models: A proof-of-concept for a waqf-based alternative financing model for renewable energy investments

journal contribution
submitted on 2024-09-08, 08:49 and posted on 2024-09-08, 08:49 authored by Ibrahim Ari, Muammer Koc

This study investigates alternative equity-based financing models and proposes a waqf-owned (that could also be called philanthropy-, endowment-, trust-, foundation-, and third sector-based) financial intermediary (WOFI). We do so by developing the agent-based model and scenario-based computer simulations for financing solar powerplants. For this purpose, we redesign a waqf-based financing system and analyze the changes in wealth inequality, capital pooling, and social prosperity for a future time frame. As a proof-of-concept, the simulation results show that for the given case study, the proposed WOFI reduces wealth inequality dramatically, whereas conventional debt-based financing models raise inequality. Besides, restructuring the waqf-based financial intermediaries also enables the capital pooling essential for large projects and absent in the conventional waqf system. In short, this study proves that waqf-based institutions have a remarkable potential to contribute towards sustainable development goals by taking account of long-run social implications, economic growth, and environment-friendly projects.

Other Information

Published in: Borsa Istanbul Review
License: http://creativecommons.org/licenses/by-nc-nd/4.0/
See article on publisher's website: https://dx.doi.org/10.1016/j.bir.2021.03.007

Funding

Open Access funding provided by the Qatar National Library.

History

Language

  • English

Publisher

Elsevier

Publication Year

  • 2021

License statement

This Item is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Institution affiliated with

  • Hamad Bin Khalifa University
  • College of Science and Engineering - HBKU

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